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3 Bank Stocks With Recent Dividend Hikes to Keep on Your Radar
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Key Takeaways
CATY raised its quarterly dividend 11.8% to 38 cents, payable March 9 to holders of record as of Feb. 26.
FISI hiked its payout 3.2% to 32 cents, citing strong 2025 profitability and balance sheet strength.
CCNE increased its dividend 5.6% to 19 cents as 2026 sales and earnings estimates signal solid growth.
The U.S. markets began 2026 on a relatively solid footing, even as several overhangs like soft labor conditions, sticky inflation, geopolitical strains, and uncertainty around tariffs and trade policy continued to weigh on investor sentiment. Strong fourth-quarter earnings and a measured stance from the Federal Reserve helped offset some of these pressures.
Over the past week, the KBW Nasdaq Regional Banking Index declined nearly 3% due to heightened volatility and the launch of an AI-powered tax planning tool from U.S. fintech startup Altruist, which sparked fears of fee compression and disruption in the wealth management & brokerage sector. Investors saw the move as a threat to traditional wealth advisory revenues. In this environment, investors may want to prioritize fundamentally strong regional banks that offer attractive dividend yields and the potential for steady income.
Notably, Cathay General Bancorp (CATY - Free Report) , Financial Institutions, Inc. (FISI - Free Report) and CNB Financial Corporation (CCNE - Free Report) each announced dividend increases last week. Backed by resilient business models and consistent profitability, these banks have demonstrated an ability to navigate economic uncertainty. Their ongoing commitment to capital returns also positions them as potential sources of reliable cash flow in a challenging macro backdrop.
3 Bank Stocks to Watch
Cathay General offers a wide range of financial services and currently operates more than 60 branches across the nation in California, New York, Washington, Texas, Illinois, Massachusetts, Maryland, Nevada and New Jersey.
On Feb. 13, 2026, CATY announced a quarterly cash dividend of 38 cents per share, marking an increase of 11.8% from the prior payout. The dividend will be paid out on March 9 to shareholders of record as of Feb. 26.
Cathay General increased its dividend once in the last five years, with an annualized growth rate of 1.43%. It has a dividend yield of 2.55% and a dividend payout ratio of 30%.
The Zacks Consensus Estimate for CATY’s 2026 sales indicates a year-over-year rise of 5.3%, while that for earnings suggests 12.6% growth. Over the past year, the CATY stock has gained 14.5%. This Zacks Rank #2 (Buy) company has a market cap of $3.63 billion. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Financial Institutions is a financial holding company with $6.3 billion in assets as of Dec. 31, 2025, offering banking and wealth management products and services.
On Feb. 12, 2026, FISI announced a quarterly cash dividend of 32 cents per share, marking an increase of 3.2% from the prior payout. The dividend will be paid out on April 2, 2026, to shareholders of record as of March 13, 2026.
Financial Institutions' president and chief executive officer, Martin K. Birmingham, stated, “The increase to our quarterly cash dividend reflects our strong profitability in 2025, the strength of our balance sheet today, and our Board’s confidence in our ability to sustainably grow earnings over the long-term.”
FISI increased its dividend five times in the last five years, with an annualized growth rate of 3.03%. It has a dividend yield of 3.6% and a dividend payout ratio of 34%.
The Zacks Consensus Estimate for FISI’s 2026 sales indicates a year-over-year rise of 6%, while that for earnings suggests 8% growth. Over the past year, the stock has gained 19.1%. This Zacks Rank #3 (Hold) company has a market cap of $692.7 million.
CNB Financial is a financial holding company with consolidated assets of $8.4 billion engaged in a full range of banking activities and services, including trust and wealth management services, for individual, business, governmental, and institutional customers.
On Feb. 10, 2026, CNB Financial declared a quarterly cash dividend of 19 cents per share of common stock, marking an increase of 5.6% from the prior payout. The dividend is payable on March 13 to common stock shareholders of record as of Feb. 27, 2026.
CCNE increased its dividend three times in the last five years, with an annualized growth rate of 1.16%. It has a dividend yield of 2.43% and a dividend payout ratio of 25%.
The Zacks Consensus Estimate for CCNE’s 2026 sales indicates a year-over-year rise of 22.2%, while that for earnings suggests 16.6% growth. Over the past year, the stock has gained 13.6%. This Zacks Rank #3 company has a market cap of $874.9 million.
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3 Bank Stocks With Recent Dividend Hikes to Keep on Your Radar
Key Takeaways
The U.S. markets began 2026 on a relatively solid footing, even as several overhangs like soft labor conditions, sticky inflation, geopolitical strains, and uncertainty around tariffs and trade policy continued to weigh on investor sentiment. Strong fourth-quarter earnings and a measured stance from the Federal Reserve helped offset some of these pressures.
Over the past week, the KBW Nasdaq Regional Banking Index declined nearly 3% due to heightened volatility and the launch of an AI-powered tax planning tool from U.S. fintech startup Altruist, which sparked fears of fee compression and disruption in the wealth management & brokerage sector. Investors saw the move as a threat to traditional wealth advisory revenues. In this environment, investors may want to prioritize fundamentally strong regional banks that offer attractive dividend yields and the potential for steady income.
Notably, Cathay General Bancorp (CATY - Free Report) , Financial Institutions, Inc. (FISI - Free Report) and CNB Financial Corporation (CCNE - Free Report) each announced dividend increases last week. Backed by resilient business models and consistent profitability, these banks have demonstrated an ability to navigate economic uncertainty. Their ongoing commitment to capital returns also positions them as potential sources of reliable cash flow in a challenging macro backdrop.
3 Bank Stocks to Watch
Cathay General offers a wide range of financial services and currently operates more than 60 branches across the nation in California, New York, Washington, Texas, Illinois, Massachusetts, Maryland, Nevada and New Jersey.
On Feb. 13, 2026, CATY announced a quarterly cash dividend of 38 cents per share, marking an increase of 11.8% from the prior payout. The dividend will be paid out on March 9 to shareholders of record as of Feb. 26.
Cathay General increased its dividend once in the last five years, with an annualized growth rate of 1.43%. It has a dividend yield of 2.55% and a dividend payout ratio of 30%.
Cathay General Bancorp Dividend Yield (TTM)
Cathay General Bancorp dividend-yield-ttm | Cathay General Bancorp Quote
The Zacks Consensus Estimate for CATY’s 2026 sales indicates a year-over-year rise of 5.3%, while that for earnings suggests 12.6% growth. Over the past year, the CATY stock has gained 14.5%. This Zacks Rank #2 (Buy) company has a market cap of $3.63 billion. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Financial Institutions is a financial holding company with $6.3 billion in assets as of Dec. 31, 2025, offering banking and wealth management products and services.
On Feb. 12, 2026, FISI announced a quarterly cash dividend of 32 cents per share, marking an increase of 3.2% from the prior payout. The dividend will be paid out on April 2, 2026, to shareholders of record as of March 13, 2026.
Financial Institutions' president and chief executive officer, Martin K. Birmingham, stated, “The increase to our quarterly cash dividend reflects our strong profitability in 2025, the strength of our balance sheet today, and our Board’s confidence in our ability to sustainably grow earnings over the long-term.”
FISI increased its dividend five times in the last five years, with an annualized growth rate of 3.03%. It has a dividend yield of 3.6% and a dividend payout ratio of 34%.
Financial Institutions, Inc. Dividend Yield (TTM)
Financial Institutions, Inc. dividend-yield-ttm | Financial Institutions, Inc. Quote
The Zacks Consensus Estimate for FISI’s 2026 sales indicates a year-over-year rise of 6%, while that for earnings suggests 8% growth. Over the past year, the stock has gained 19.1%. This Zacks Rank #3 (Hold) company has a market cap of $692.7 million.
CNB Financial is a financial holding company with consolidated assets of $8.4 billion engaged in a full range of banking activities and services, including trust and wealth management services, for individual, business, governmental, and institutional customers.
On Feb. 10, 2026, CNB Financial declared a quarterly cash dividend of 19 cents per share of common stock, marking an increase of 5.6% from the prior payout. The dividend is payable on March 13 to common stock shareholders of record as of Feb. 27, 2026.
CCNE increased its dividend three times in the last five years, with an annualized growth rate of 1.16%. It has a dividend yield of 2.43% and a dividend payout ratio of 25%.
CNB Financial Corporation Dividend Yield (TTM)
CNB Financial Corporation dividend-yield-ttm | CNB Financial Corporation Quote
The Zacks Consensus Estimate for CCNE’s 2026 sales indicates a year-over-year rise of 22.2%, while that for earnings suggests 16.6% growth. Over the past year, the stock has gained 13.6%. This Zacks Rank #3 company has a market cap of $874.9 million.